Mapletree Inv a top bidder for Aussie asset

Singapore

IN what could be its first move in Australia, Mapletree Investments has emerged as a top contender for a near A$100 million (S$111 million) A-grade office building in Brisbane.

Mapletree is competing with offshore rivals for the asset, according to a media report in Australia.

The seller, US property group Hines, had bought the asset just two years ago for A$88 million, The Australian report said. CBRE is brokering the sale for Hines, according to online marketing materials.

When contacted, Mapletree declined comment on this report but reiterated that diversifying its portfolio outside of Singapore remains "a key component of Mapletree's growth strategy" and this includes exploring new markets such as Australia.

"We will update the market as and when such plans materialise," a Mapletree spokeswoman said.

The six-storey building at 144 Montague Road in South Brisbane spans a net lettable area of 14,742 square metres and houses the headquarters of listed mining services company Ausenco.

Mapletree's said foray in Australia is seen as an acceleration of its overseas hunt for assets, having just inked its maiden acquisition in the US in August.

The outlook for Australia's office sector has, however, taken a turn for the worse in view of softening leasing activities as more office occupiers consolidate or shrink their operations.

According to Savills, there was negative absorption of 7,275 sq m of office space in the 12 months to June 2014 in Brisbane's CBD fringe.

But the office building that Mapletree is said to be acquiring is fully leased to Ausenco till November 2021, according to The Australian.

In its bid to diversify across geographical markets and asset classes, Mapletree had earlier snapped up a property in America's Silicon Valley for US$70 million, which it is upgrading into a modern serviced residence that will come under the Oakwood brand.

In a deal struck with Oakwood Worldwide in April, Mapletree is allowed to use the Oakwood brand for serviced apartments that it acquires or develops. Mapletree also acquired a 49 per cent stake in Oakwood Asia Pacific (OAP) for an undisclosed sum.

Over the past five years, Mapletree's assets under management (AUM) have doubled to S$24.6 billion as at March 31, with 74 per cent being third-party AUM, according to its annual report.